Eco

Federal Reserve's Mouthpiece: The U.S. Economy May Face a Hard Landing

ChainCatcher news, Federal Reserve mouthpiece Nick Timiraos published an article in the Wall Street Journal stating that over the past year, U.S. economic policymakers have focused on achieving a so-called soft landing, which means reducing inflation without causing an economic recession. Now, a group of "new pilots" is considering changing course, and they themselves admit that this could lead the economy toward a hard landing.In recent days, President Trump and his senior advisors have shown indifference to the rising risks of trade uncertainty hampering private sector investment. They believe that a detox may be needed in terms of spending and hiring, that falling stock values are not concerning, and that inflation may rise in the short term. Some analysts warn that Trump's messaging may reflect a strategic effort to improve the country's bargaining position with trade partners, leaving bond investors and the Federal Reserve stunned, thereby maintaining a tendency to cut interest rates.Trump's impulsive behavior has prompted European authorities to take measures to increase economic stimulus and defense spending. Analysts say that the situation over the past two weeks indicates that Trump is unlikely to change course due to a market downturn, which will help reset Wall Street's expectations. Andy Laperriere, head of U.S. policy research at Piper Sandler, said: "Everything he is doing tells us he is not joking. He fundamentally believes this on tariffs."

Economic slowdown may force the Federal Reserve to adopt a dovish stance, but the policy shift is still constrained by inflation risks

ChainCatcher news, according to TheBlock, analysts pointed out that last Friday's disappointing U.S. February employment report reinforced expectations for a Federal Reserve rate cut, which could boost risk appetite and lift the stock market and crypto assets. However, ongoing inflation risks driven by tariffs and supply chain issues still constrain a policy shift. Last week, the U.S. Labor Department's seasonally adjusted data showed that non-farm employment added only 151,000 jobs from January to February, marking the weakest February growth since 2019 and falling short of the 170,000 expected by economists surveyed by Dow Jones. Government layoffs, federal funding cuts, tariff uncertainties, and tightening immigration policies will weigh on job growth in the coming months. These factors may lead to a slowdown in hiring, suppress economic momentum, and reinforce deflationary trends. The Federal Reserve is facing a complex policy environment: weak employment supports rate cuts, but supply-side constraints and inflation concerns from geopolitical risks make it cautious. Uncertainty may continue to suppress the crypto market.Wincent Senior Director Paul Howard stated that the disappointing employment report underscores the necessity of rate cuts to stimulate the economy, and reducing deficit costs may be a government priority, which would benefit risk assets like crypto; CoinPanel trading automation expert Kirill Kretov pointed out that rising unemployment could improve Bitcoin and DeFi liquidity by raising rate cut expectations. Slowing wage growth suggests easing inflation pressures, making it more likely for the Federal Reserve to pivot sooner. The CME FedWatch tool shows that 55.3% of rate traders believe the June FOMC meeting is the earliest point for a rate cut this year, while the Atlanta Fed's GDPNow model has downgraded U.S. first-quarter economic growth to a contraction of 2.4%, which, if realized, would mark the first deflation since the first quarter of 2022, intensifying recession fears.Analysts indicate that global economic uncertainty has prompted an increase in bearish positions in the derivatives market, with the risk reversal indicator over the past 24 hours leaning more towards put options, reflecting market concerns about increased selling pressure. Options flow suggests that bullish sentiment may need to wait until the third quarter. Although $80,000 remains a key short-term support level for Bitcoin, the upside potential is limited. Before a new narrative emerges, the correlation between Bitcoin and the stock market may strengthen. Tariff risks persist, and volatility may increase ahead of the release of U.S. CPI and PPI data this week.

BNB Chain launched the second round of a $4.4 million permanent liquidity support program, covering all track tokens

ChainCatcher news, BNB Chain today launched the second round of the $4.4 million permanent liquidity program, expanding from the first round's Meme track to all outstanding native project tokens on BSC (BNB Smart Chain). The aim is to strengthen the long-term development of the BNB Chain ecosystem by providing long-term liquidity support for high-potential projects.This round of competition will take place from March 13 to March 20, 2025, and will include daily and weekly contests to identify the most promising assets based on key performance indicators. The daily competition will be divided into two categories: the "Potential Explosion Zone" for assets with a market cap below $20 million and the "Mature Zone" for assets with a market cap of at least $20 million. The daily competition will last for seven days, with one winning project selected from each zone each day. Rankings will be determined based on a comprehensive performance of trading volume, market cap, and price increase within 24 hours.The weekly competition will evaluate project tokens based on their trading volume, market cap, and price increase over the seven days. Any asset that meets the participation criteria is eligible to participate in the weekly competition, regardless of whether it wins in the daily competition.Eligibility to participate in the competition: Assets must be natively launched on BSC, launched after January 1, 2024, with a market cap of at least $50,000 and a 24-hour trading volume of no less than $10,000.Please note that Binance-pegged tokens, gas fee tokens, stablecoins, cross-chain wrapped tokens, liquidity re-staking tokens, and winners from the first round of the Meme liquidity competition will not be eligible to participate in this round.Conditions for project victory: A market cap of no less than $1 million, an active holder count of at least 2,000 for the daily competition, at least 5,000 for the weekly competition winners, and the top 10 external holding wallets (EOA) must be less than 10% of the total supply; the project must be verified on BscScan or pass a security audit.For more competition rules and ranking formulas, please refer to the source link.
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